LG Magna ePowertrain, a recently launched joint venture between LG Electronics and Magna International, opened a new factory in Mexico, the joint venture’s first production location in North America. When complete, the 260,000 square foot plant will produce a host of powertrain components to support General Motors (GM) electric vehicle production.
LG Magna ePowertrain is a relatively new joint venture launched in July 2021 that now has over 1,300 employees in Korea, North and South America, Europe and Asia.
By combining LG Electronics’ experience in electric vehicle component technology and manufacturing with Magna International’s (MGA) over 65 years of experience in traditional automotive manufacturing, the joint venture aims to become the premier supplier electric mobility solutions for electric vehicles.
In addition to its business with LG, Magna International has manufacturing contracts for EV automakers like Fisker, REE Automotive and Jaguar Land Rover, while simultaneously developing its own EtelligentDrive products like its new EtelligentReach powertrain.
A huge automotive player involved in Magna is GM, which will be the fundamental customer for the new facility being built by LG Magna ePowertrain.
At a groundbreaking ceremony in Mexico today, representatives from LG, Magna and GM were all on hand with shovels in hand to kick off a two-year build.
LG, Magna and GM: a potential Cerberus for the production of electric vehicles
Magna announced the news on behalf of its joint venture in a press release today, sharing images of LG, Magna and GM executives attending the ceremony in Ramos Arizpe, Mexico, about an hour southwest of Monterrey.
As LG Magna ePowertrain’s first production presence in North America, the joint venture expects to create 400 new jobs. The first task of these new employees will be to manufacture an arsenal of electric vehicle components for GM, including inverters, motors and on-board chargers. Cheong Won-suk, CEO of LG Magna e-Powertrain, said:
This new installation demonstrates the continued growth of LG Magna e-Powertrain. The continued success of the joint venture will allow us to better support our customers with best-in-class components for the next generation of electric vehicles, and help us expand our presence in the growing global electric vehicle market.
The Mexican plant will join LG Magna ePowertrain’s sole manufacturing facility in Nanjing, China, and will set a benchmark for how quickly the fledgling joint venture is growing. Having the backing of big manufacturing and tech companies like LG, Magna International, and GM certainly helps too. Tom Rucker, President of Magna Powertrain explained:
In just over a year, we added an expansion agreement, identified a strategic location to support our client and are now in the process of delivering on our plans. The construction of a new facility is a true testament to the strength of this collaboration and commitment to providing customers with innovative solutions to their challenges. It also reinforces our active participation in the transformation of electrification whether through eDrive subsystems or complete systems.
Now that the ground of the Ramos Arizpe has been officially opened, the LG Magna ePowertrain will begin the actual construction, which is expected to be completed in 2023.
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